Pre-Market
A=5448-5255=193
B to retrace 50-75% of A means 5365-5400.
And formwise zig-zag,flat or triangle or even a combination of these three.
For intra-day traders, during these phases when B wave with a range of 100 points is in play but no well-defined form---pivot based trading becomes handy.
R2 = P + (H - L) = P + (R1 - S1)
R1 = (P x 2) - L
P = (H + L + C) / 3
S1 = (P x 2) - H
S2 = P - (H - L) = P - (R1 - S1)
Further information of this very basic trading strategy is available on the link given below:
Investopedia:Article on Pivot Points
Otherwise for most basic form of B(i.e. zig-zag) following channel would be helpful:
.png)
.png)
A=5448-5255=193
B to retrace 50-75% of A means 5365-5400.
And formwise zig-zag,flat or triangle or even a combination of these three.
For intra-day traders, during these phases when B wave with a range of 100 points is in play but no well-defined form---pivot based trading becomes handy.
R2 = P + (H - L) = P + (R1 - S1)
R1 = (P x 2) - L
P = (H + L + C) / 3
S1 = (P x 2) - H
S2 = P - (H - L) = P - (R1 - S1)
Further information of this very basic trading strategy is available on the link given below:
Investopedia:Article on Pivot Points
Otherwise for most basic form of B(i.e. zig-zag) following channel would be helpful:
EOD
As we went below 5255(yesterday's low) today, I kept on wondering if B was over so soon?
A=5448-5255=193
B=5255-5333=78(40%)
But in the heart of my heart I am not convinced as A lasted in 34 hrs and B in only 5 hours???
And it is primarily on this account that I tend to prefer that B is still in play and has taken the form of an Expanded Flat where:
B(a)=5255-5333=78
B(b)=5333-5239=94((120%)
B(c) in play and can do upto 5367(165%)
But this Probability would be confirmed only by a tick above today's high:
.png)
If today's high is protected then we may have finished B at 5333 and C might have started to take us to minimum C=0.62*A=193x.062=120=5213.or C=A=5140
.png)
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